Subdividing, The New Goldmine?

So you want to subdivide…or you’re at least interested!! Great!

It used to be that people kept manor sized lawns like ye old lords, and whilst we’re not advocating for getting rid of the compost and vegetable patch, we do recommend considering subdividing. With the housing crisis, it’s more and more sustainable to keep just what you need and create wealth and housing with the rest. There’s a heap of reasons people choose to subdivide their land:


To Sell

To Build

To Live on

To Develop

…. or even to keep, whatever the reason, that back yard of yours could be a goldmine!

So what is subdividing? 

Subdividing property, basically means you take a piece of land (ie your garden, a vacant lot etc) and turn it into two or more tracts of land. Even just showing that your land can be subdivided and has Development potential can be a way of adding value before selling or remortgaging.

Don’t just take our word for it, in a 2018 Stuff article Max Fragar said: “Our experience is that on average, a completed dual occupancy approval increases the value of a property by up to 40 percent.”

So fair to say, subdivisions are a great equity booster and a step for many regular Kiwis towards financial freedom! If you have an unusual or large backyard, why not utilise the space and subdivide. 

So why isn’t everybody doing it? 

Not every property can be subdivided. The first thing to check is the zone of your property under the Unitary Plan. The main thing to know is the zoning of your property impacts what can be built, how high it can go, and what it can be used for. So it is worth checking first by professionals, so there are no nasty surprises down the line. 

Auckland Council explains zoning this way: “under the Auckland Unitary Plan, zones manage how different areas are used, developed or protected. All land in Auckland, including land in coastal marine areas, has a zone. In general, the way that land is zoned reflects how it is used and what sort of activities happen there. Zoning can also identify how the land can be utilised and also how it is expected to change the future”. 

It always pays to consult an expert when looking to subdivide and develop as they often have a more subtle understanding of your property’s potential. This ensures that you know the zoning of your land and what’s possible. Subdividing doesn’t have to be scary if you take it step by step. Know your zones, consult an expert, have a plan and follow through to build some equity.

Here at I Am Developer we love the Auckland Unitary Plan (we like to think of ourselves as nerds for it!) We offer free seminars on understanding the Unitary Plan, and how to effectively assess properties for development potential.

Contact us to find out more.